HK Salaries Tax Allowances Calculator 2026/27
Add up all your Hong Kong salaries tax personal allowances for the 2026/27 year of assessment under Inland Revenue Department (IRD) rules. See your total allowance and how it reduces your taxable income.
Hong Kong Salaries Tax Allowances for 2026/27
Hong Kong's salaries tax system gives generous personal allowances that directly reduce your taxable income before progressive rates are applied. According to the Inland Revenue Department (IRD), for the year of assessment 2026/27 the allowances remain at:
- Basic Allowance: HK$132,000 — single filer baseline
- Married Person's Allowance: HK$264,000 — joint election
- Single Parent Allowance: HK$132,000 — sole carer of a child
- Child Allowance: HK$130,000 per child (under 18, or 18–24 in full-time education)
- Newborn Child Additional Allowance: HK$130,000 in the year of birth (doubles to HK$260,000 total)
- Dependent Parent / Grandparent Allowance: HK$50,000 each (age 55–59 or disabled); HK$130,000 each (age 60+)
- Dependent Parent Cohabiting: Additional HK$50,000 / HK$130,000 (doubles base when parent lives with you)
- Dependent Brother/Sister: HK$37,500 each (under 18 or 18–24 in full-time education, you maintain them)
- Disabled Dependant: Additional HK$75,000 per disabled dependant
How HK Salaries Tax Works
HK uses the lower of two calculations:
- Progressive rates on (Income − Allowances − Deductions): 2%, 6%, 10%, 14%, 17% (top rate). 2024 onward: 16% top rate for first HK$5M of net income, 17% above.
- Standard rate on (Income − Deductions only, no allowances): 15% on first HK$5M, 16% above.
Most taxpayers pay the progressive rate, which is much lower due to the allowance deductions. High earners (HK$2M+) sometimes pay the standard rate which has no allowance subtraction.
MPF and Voluntary MPF (TVC) Deductions
Mandatory Provident Fund (MPF) contributions are deductible up to HK$18,000 per year. Voluntary contributions to MPF Tax-deductible Voluntary Contributions (TVC) are deductible up to an additional HK$60,000 per year (combined with QDAP — Qualifying Deferred Annuity Policy). Both significantly reduce your taxable income and are recommended by the Mandatory Provident Fund Schemes Authority (MPFA).
Home Loan Interest Deduction
Per IRD, home loan interest is deductible up to HK$100,000 per year for owner-occupied residential property. The deduction is available for up to 20 years total (lifetime cap). This is separate from the allowances and reduces taxable income directly.
Personal Disability Allowance
The Personal Disability Allowance of HK$75,000 is available to taxpayers who are themselves persons with disabilities (different from the disabled dependant allowance). Requires medical certification.
Sources: Inland Revenue Department Hong Kong (ird.gov.hk), Inland Revenue Ordinance Cap. 112, Mandatory Provident Fund Schemes Authority (mpfa.org.hk). Last updated: May 2026 — based on the 2026/27 Budget allowance schedule.